Economy
Financial Experts Have Explained How to Short Crypto on the Market in 2023
Can You Short Cryptocurrencies? – Contrary to popular belief, shorting cryptocurrencies is possible. While short selling is traditionally associated with the stock market, cryptocurrency exchanges now facilitate shorting options. Traders can take advantage of this opportunity by focusing on cryptocurrencies with high liquidity and consistent trading volumes to minimize the risk of price manipulation. Cryptocurrency markets are known for their volatility, making it challenging to predict price movements. However, by employing short-selling techniques, investors can profit from falling prices without owning the underlying assets. In this article, TU experts explore how to short crypto, including the risks involved and the best strategies to implement.
In simple terms, what does it mean to short cryptocurrency?
Shorting cryptocurrency involves borrowing digital currency from a broker and selling it at the current market price. After the cryptocurrency’s value decreases, the trader buys it back and repays the borrowed funds plus interest to the broker. The profit is the margin between the purchase and sale prices of the crypto.
Shorting Cryptocurrency: Different Ways to Do It
There are various options for shorting crypto. Among them, analysts at Traders Union particularly emphasize the following ones:
- Margin Trading: Borrowing funds to enter short positions on cryptocurrency exchanges.
- Short-Selling Bitcoin Assets: Selling Bitcoin with the expectation of buying it back at a lower price.
- Using Bitcoin CFDs: Trading contracts for difference (CFDs) based on the price fluctuations of Bitcoin.
- Futures Market: Engaging in futures contracts that allow investors to short cryptocurrencies.
- Binary Options Trading: Speculating on whether the price of a cryptocurrency will increase or decrease within a predetermined time period.
- Prediction Markets: Participating in platforms that enable users to bet on the outcome of future events.
To discover the main pros and cons of the above options, read the article prepared by TU.
Step-by-Step Guide on How to Short Crypto
Traders Union experts suggest following their Step-by-Step Guide on shorting crypto. Here is a summarized version of the guide:
- Select a reliable cryptocurrency exchange and proceed to register for an account.
- Deposit funds using various methods, including debit/credit cards, bank transfers, or cryptocurrencies.
- Conduct a thorough market analysis to inform your short-selling decisions.
- Select the specific cryptocurrency you wish to short from the derivatives section of the exchange.
- Execute the short position, specifying the desired amount and adhering to risk management principles.
- Maintain a disciplined approach by following your risk management plan throughout the short-selling process.
Risks and Opportunities of Shorting Cryptocurrency
Shorting cryptocurrencies presents both advantages and risks. On the positive side, it allows investors to profit from overvalued assets and hedge against potential market downturns. However, TU analysts note that price volatility and the lack of regulation in the cryptocurrency futures market pose significant risks. Analysts particularly underscore the importance of conducting comprehensive market research and carefully consider these risks before engaging in short-selling activities.
Cryptocurrency Short-Selling Strategies
To maximize the effectiveness of short-selling, experts suggest traders employ the following strategies:
- Technical and Fundamental Analysis: Combine historical price data and trading volume analysis (technical) with an evaluation of a cryptocurrency’s long-term potential (fundamental).
- Diversification: Short a variety of cryptocurrencies to diversify your holdings and mitigate the impact of potential losses.
- Short-Term Shorting: Take short positions for brief periods, known as scalping, to capitalize on quick profits. This strategy requires a high tolerance for risk and a solid understanding of market conditions.
- Caution for Beginners: Shorting cryptocurrencies carries significant risk, making it unsuitable for inexperienced traders. Consider adopting a more conservative approach, such as buying and holding, when starting out.
Conclusion
Short-selling cryptocurrencies can be a lucrative strategy for experienced traders, but it comes with inherent risks. Using borrowed funds amplifies these risks, so Traders Union analysts recommend implementing proper risk management practices, including the use of stop losses. Beginners are advised to exercise caution and gain a thorough understanding of market dynamics before attempting short-selling strategies.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
